From 1995 to 2007, real estate prices in Spain rose by an astounding 201 percent. In economic terms, this is what is known as a housing bubble. And what do we know about bubbles? Well, sooner or later they have to pop. The Spanish real estate market was no exception.
In the first year after the proverbial bubble burst, sales were off by more than a quarter. Property values continued to fall as millions of home remained unsold. Prices and values declined for another two years until buyers finally began to re-enter the market.
What are buyers looking for? Spain has been the most popular tourist destination for UK residents for several years now. Many visitors are so in love with the land that they actually purchase real estate there. In fact, lack of foreign investment is one of the many reasons why Spanish mortgages collapsed.
Why now? Though foreign investors are understandably apprehensive, housing prices in Spain are simply too good to pass up. This is especially true of the more than one million unfinished homes. You see, once the market plummeted, many construction companies simply abandoned unfinished homes because they knew they could not sell them.
But now that the market has bounced back a bit, they are offering these homes at fire sale prices. Of course, an unfinished home often requires a lot of work. They are not simple fixer-uppers. A person must have experience with carpentry, plumbing and electrical work to even attempt to finish a home.
What should you look for? As you might expect, the more finished a home is the better the deal. Also, look for a home that requires work in your own particular area of expertise. For example, if you are a plumber, look for a home that has unfinished bathrooms. The work will not be easy, but with a few weeks of work it is possible to save yourself tens of thousands of pounds.
